8th Pay Commission: Will HRA be equal to the previous salary? Employees will be in trouble due to 8th Pay Commission!
8th Pay Commission: Central government employees are waiting for the implementation of the new pay commission. With the implementation of the new pay commission, there may be a significant increase in the House Rent Allowance (HRA) of central government employees. However, a lot will depend on the fitment factor. Under the proposed structure of the 8th Pay Commission, the house rent allowance for central government employees is likely to increase based on the fitment factor suggested by the commission.
Although the commission has not yet finalized its report, employee unions have proposed a higher fitment factor, which will increase both the basic pay and HRA. Today, we will look at the possible changes in House Rent Allowance (HRA) in X, Y, and Z category cities in India. These changes are based on the fitment factor of 2.57 implemented in the 7th Pay Commission.
8th Pay Commission: Expected salary and HRA at 2.57 fitment factor
| level | current basic salary | New basic after 2.57 fitment factor | X City HRA (30%) | Y City HRA (20%) | Z City HRA (10%) |
|---|---|---|---|---|---|
| Level-1 | ₹18,000 | ₹46,260 | ₹13,880 | ₹9,250 | ₹4,630 |
| level 2 | ₹19,900 | ₹51,140 | ₹15,340 | ₹10,230 | ₹5,110 |
| Level-3 | ₹21,700 | ₹55,770 | ₹16,730 | ₹11,150 | ₹5,580 |
| Level-4 | ₹25,500 | ₹65,530 | ₹19,660 | ₹13,110 | ₹6,550 |
| Level-5 | ₹29,200 | ₹75,040 | ₹22,510 | ₹15,010 | ₹7,500 |
How much increase is possible in House Rent Allowance for Level-1? For Level-1 employees, estimates suggest that under a fitment factor of 2.10, the revised basic pay will increase to ₹37,800, taking the house rent allowance to ₹11,340 in X-class cities, ₹7,560 in Y-class cities and ₹3,780 in Z-class cities. With fitment factor of 2.28, the revised basic pay is estimated to be ₹41,040, leading to HRA of ₹12,310, ₹8,210 and ₹4,100 in cities X, Y and Z respectively. At the same time, based on the fitment factor of 2.57 implemented in the 7th Pay Commission, the revised basic pay for a Level-1 employee may increase to ₹ 46,260, due to which the HRA will increase to ₹ 13,880 in X cities, ₹ 9,250 in Y cities and ₹ 4,630 in Z cities.
These estimates are illustrative and based on the existing HRA rates (30%, 20% and 10%) for cities X, Y and Z. However, the final changes in pay and allowances will depend on the recommendations of the commission.
What is the demand for change in HRA?
Earlier this month, the All India NPS Employees Federation (AINPSEF) had demanded an increase in the house rent allowance under the 8th CPC. It recommended 36% HRA for X category cities, 24% for Y category cities and 12% for Z category cities. Apart from this, another suggestion is that whenever the Dearness Allowance (DA) is increased, the HRA should also be increased. Employee organizations have also suggested changing the method of calculating fixed salary and increasing the family unit from 3 to 4.4. He has also demanded that dependent parents should also be included in this unit.
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